Jain Resource Recycling Limited has announced the price band for its highly anticipated initial public offering (IPO) at 220 to 232 rupees per share. This marks a significant step for the company as it prepares to raise substantial capital from investors, with the offer size pegged at approximately 1,250 crore rupees. The IPO, blending fresh issue proceeds and an offer for sale by existing shareholders, is expected to attract strong interest from institutional and retail investors alike.
Key Highlights Of The IPO Announcement
Price Band And Issue Size
The IPO price band has been fixed between Rs 220 and Rs 232 per share. The total issue size is set at Rs 1,250 crore, comprising Rs 500 crore as a fresh issue and Rs 750 crore through an offer for sale by current shareholders.
Lot Size And Bidding Dates
Investors can apply for the IPO in lots of 64 shares each. The IPO opening and closing dates have been scheduled to allow participation from a broad investor base seeking exposure to the metal recycling industry.
Use Of Proceeds
Majority of the fresh proceeds, approximately Rs 375 crore, will be directed towards repayment of outstanding loans, strengthening the company's balance sheet. The remaining funds are earmarked for general corporate purposes supporting operational and strategic initiatives.
The Business And Market Position Of Jain Resource Recycling
Tracing its legacy back to 1953 and formally incorporated as Jain Resource Recycling Limited in 2022, the company stands as one of India’s leading players in non-ferrous metal recycling. It operates three advanced recycling facilities located in Chennai, strategically equipped to handle diverse product lines including lead, copper, and aluminium ingots.
The company sources raw materials primarily from international markets and exports its refined products to over 20 countries across Asia, establishing a solid global footprint that bolsters its growth prospects. Its customer base spans various industries such as lead acid batteries, electronics, automotive, and pigments.
Financial Performance And Growth Trajectory
Jain Resource Recycling has displayed robust growth with revenues rising from Rs 2,849 crore in FY22 to approximately Rs 4,428 crore in FY24. Profit margins have improved steadily with EBITDA margins moving from 4.09% to 5.13% over the same period. Profit after tax also rose significantly, reflecting operational efficiencies and an expanding market reach.
The company’s strategic registration of lead ingots with the London Metal Exchange (LME) offers it a competitive edge, enabling access to premium international customers with adherence to global quality standards and pricing benchmarks.
Industry Outlook And Investment Appeal
The non-ferrous metal recycling sector is witnessing rapid transformation driven by rising environmental regulations, urbanisation, and demand for sustainable metal sourcing. Jain Resource Recycling’s market-leading position, backed by modern facilities and experienced management, positions it well to capitalize on these macro trends.
For investors, the IPO presents an opportunity to enter a niche but growing space supported by stable cash flows, diversified revenues, and significant entry barriers.
Risks To Consider
Potential investors should note risks such as any disruption in availability or price volatility of scrap materials, stringent quality norms impacting production, and dependency on key customers and exporters. Additionally, operational risks linked to production continuity and cost pressures from utilities could affect margins.
Conclusion And What Lies Ahead
Jain Resource Recycling’s IPO at a price band of Rs 220-232 per share is poised to generate considerable interest from market participants eager for exposure to India’s resource recycling future. With strong fundamentals, a strategic business model, and clear plans for debt reduction, the company is setting the stage for a successful public market debut.
Investors looking at long-term themes of sustainability and circular economy will find this IPO a compelling proposition backed by decades of industry know-how.
Sources: Company press releases, CNBCTV18, Kotak Securities, MoneySukh, SEBI filings
